SF footwear company Allbirds pivots from shoes to AI; sees stock surge by more than 400%

SAN FRANCISCO (KGO) -- San Francisco-based Allbirds is making a major shift in its business, moving away from footwear and toward artificial intelligence.

The company announced it is pivoting to focus on AI infrastructure, with a long-term goal of becoming an AI cloud solutions provider.

The news sent the company's stock surging Wednesday, climbing 400 percent in early trading.

As part of the strategic overhaul, Allbirds said it plans to rebrand under a new name, "New Bird AI."

The move marks a dramatic change for the San Francisco-based company, which has been known for shoes but now intends to center its future around artificial intelligence technology.